Medium Term Expenditure Framework > Public expenditure management

The Functions and Organization of Ministries of Finance

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harnett:
"There is surprisingly little literature on the functions and organization of modern ministries of finance. Yet some critically important questions arise. What are the core finance functions that a state needs to carry out? What resources—financial, human and IT—are required to carry out these functions efficiently and effectively? Where should the functions be located—in a department or directorate of the finance ministry, in another ministry, or in a specialized agency? Are there any “good practice” models or approaches that can be identified looking across a range of countries, advanced, emerging and developing? What principles should developing countries follow in reorganizing their finance ministries?"

So starts the introduction to this article in the IMF's PFM Blog which also provides a link to download the IMF Working Paper in full.  I admit a vested interest as I'm involved in a functional review of a Ministry of Finance right now, but I imagine its of interest to many of you.  Of particular interest in the Working Paper is the table on page 10 and associated text - Allocation of Responsibilities for Selected Finance Functions (percent) -  which compares OECD and developing countries.

Get it here http://blog-pfm.imf.org/pfmblog/2015/11/the-functions-and-organization-of-ministries-of-finance.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+pfmblog+%28PFM+blog%29

STONE:
Thanks for posting this.  I saw earlier versions of this work on CFAs  Interesting and useful.

I particularly like Model 6 in Figure 1 on page 20.  It is meant to present an intended business model, of course, but it represents well the spider's web model of 'pasha' or 'Sun King' style of divide and rule management that I have seen too often.

I guess the best are indeed models 2 and 3 - rigid flexibility or is it flexible rigidity?

petagny:
Here's an article by Nicholas Macpherson on the evolution of HM Treasury. It's a bit 'rose-tinted' and probably now somewhat out of date, but I suppose it's worth noting his point that in the UK model the Treasury is the finance and economics ministry.

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